While Ford utilizes a variety of EV battery suppliers these days – and will soon be building its own packs – LG Energy Solutions continues to be one of the largest. Recently, that supplier announced that some Ford Mustang Mach-E battery production would be moved from Poland to Holland, Michigan by late 2025 – the NCM battery for extended range models, as the standard range lithium-iron phosphate (LFP) battery park is assembled in China. In any event, LG is currently enjoying the fruits of robust EV sales in Q3, which resulted in big profits for that company.
According to Reuters, LG Energy Solution posted a 34 percent Q3 profit increase as customers rushed to take advantage of the federal EV tax credit, which expired at the conclusion of September. While it’s only a preliminary estimate, LG believes that its operating profit closed out the third quarter at 601 billion won ($420 million USD), up substantially from the 448 billion won ($314 million USD) it raked in during Q3 2024.
This is obviously good news for LG, but the company also warns that it expects a large slowdown in demand for EVs now that the tax credit is gone, coupled with the impacts of tariffs imposed on the imports of batteries and raw materials as of late. Regardless, the supplier has worked to diversify its line to help mitigate the impacts of those issues, getting more into the energy storage business and recently signing a $4.3 billion dollar deal with Tesla to supply batteries for those purposes.
Ford certainly enjoyed a strong Q3 in terms of its all-electric-focused Model e division as well, with EV sales coming in at 30,612 units, an increase of 30.2 percent, year-over-year. However, CEO Jim Farley recently stated that he believes EV sales could be cut in half across the entire industry following the expiration of the federal EV tax credit.
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